The global luxury handbags market is expected to post a compound annual growth rate of over 7% during the period 2019-2023, according to the latest market research report by Technavio.
A key factor driving the growth of the market is the high influence of celebrity endorsements on purchase decisions. With increasing number of fashion-conscious consumers, the fashion industry has been experiencing rapid changes and advances over the last two decades. Endorsements and the use of fashion products such as luxury handbags by celebrities serve as catalysts in propelling purchase decisions.
Currently, manufacturers of handbag and personal luxury goods are adopting different marketing campaigns and strategies to expand their consumer base, brand image to trigger the sales of luxury handbags. Online advertising is also an essential part of marketing strategies, wherein, vendors often sign multiyear endorsement agreements with high-profile celebrities to enhance their brand value and propel the demand for luxury handbags.
As per Technavio, the increasing demand for convertible handbags, will have a positive impact on the market and contribute to its growth significantly over the forecast period. This research report also analyzes other important trends and market drivers that will affect the market growth over 2019-2023.
The demand for multipurpose bags that can be used on different occasions is increasing as price of luxury handbags is quite high, and consumers prefer products that can be used for multiple occasions. Therefore, several luxury brands have also introduced convertible handbags with several conversion features in the luxury segment that can be used as a handbag or a shoulder bag or a backpack. Rapidly evolving consumer demands have influenced manufacturers to introduce convertible handbags. These products are sold through online and offline channels. Thus, the increase in the demand for convertible handbags is expected to increase the demand for luxury handbags globally during the forecast period.
This market research report segments the global luxury handbags market by distribution channel (online and offline) and geographical regions (Europe, North America, APAC, South America, MEA).
The European region led the market in 2018, followed by North America, APAC, South America, and MEA respectively. However, during the forecast period, the APAC region is expected to register the highest incremental growth due to the increase in spending on personal luxury goods by millennials.